Apple to debut 7.85-inch iPad in Q4 2012?

Sources in the supply chain told DigiTimes that Apple is likely to introduce a 7.85" iPad tablet in Q4 2012.
This would be Apple's second tablet in 2012, as the company is rumored to introduce its next-gen iPad in March 2012.

However, in order to cope with increasing market competition including the 7-inch Kindle Fire from Amazon and the launch of large-size smartphones from handset vendors, Apple has been persuaded into the development of 7.85-inch iPads, the sources indicated.

In addition to purchasing 7.85-inch panels from LG Display, Apple will also buy panels from AU Optronics (AUO), indicated the sources, adding that makers in the supply chain are likely to begin production of the 7.85-inch models at the end of the second quarter of 2012.